Overview of Evolution of the industrial relations system in Pakistan
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WelcomeTO THE PRESENTATION
Evolution of the industrial relations system in Pakistan
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Industrial RelationsA regulatory system or mechanism that governs workplace relations
Industrial relations establish relations & rules which enhance and produce efficiency, productivity and excellent work, promote trust, cooperation by reducing conflicts between employer and employees.
Labor Market : A market in which workers compete for jobs and employers compete for workers on wage rate basis.
A Question?
Who is the key player in establishing the industrial relations system?
Government?
Employers and the Workers
No
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The Pakistan ScenarioAs industrial sector is increasing, role of industrial relations is increasing in Pakistan.
Trade unions centered on personalities. Very few of them attempt to organize at root level. But prefer to compete for loyalty enterprise base unions. (reason of instability).
Limit of members was 2,000 members. Now it is 135 union members for each .
International Confederation of Trade Unions (ICFTU)
Three affiliates of ICFTU were merged in Pakistan Workers Federations (PWF) in
September 2005
Before Independence
The feudal system prevalent in the country
The hostile and feudal attitude of employers
In-active role of government
Pakistan remains mostly under Military rule after independence
Anti-trade union attitude
Pakistan Workers’ Federation (PWF)A single nation wide workers unions in
Pakistan.
PWF point out the following impeding factors
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The Pakistan ScenarioRetrogressive’ labor legislation brought all the national federations under one umbrella to develop and maintain unity by forming a Joint Labor Council.
The countrywide strike call of March 1969 led to the shutdown of electricity supply in major cities for two hours in the evening. Pakistan Tripartite Labor Conference
(PTLC) was convened in 1969.
This conference give two benefits to the labor force
1. Concept of Industrial Relations Ordinance 1969
2. Electing Collective Bargaining Agent through secret ballet elections
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Steps Taken by Pakistan Govt.
The Pakistan Decent Work Country
Program (PDWCP)
2005
Cabinet approved the Labor Inspection Policy Labor Protection Policy
2006
National Employment Policy (NEP)
2007
Millennium Development Goals
and Decent Work Together
2008
Employment and service
conditions act (ESCA)
2009
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Labor Market IndicatorsLabor force participation rateEmployment-to-population ratioStatus in employmentEmployment by sectorPart-time workersHours of workEmployment in the informal economyUnemploymentYouth unemploymentLong-term unemployment
Unemployment by educational attainmentTime-related underemploymentInactivity rateEducational attainment and illiteracyManufacturing wage trendsLabor productivity and unit labor costs
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Labor Market IndicatorsPopulations of Pakistan
155.37 millionGrowth Rate 1.09%
Annually
2005-06Population Age Group
30% Below 10 Years old
12.9% 10-14 years old
Growth rate increases due to LFPR
Populations of Pakistan160.9 million
Growth Rate 1.8% Annually
2007-08Population Age Group
45.2% 10 Years and above
Growth rate of child labor increases due to
Populations of Pakistan163.76 million
Growth Rate 1.73% Annually
2009-10Population Age Group
45.2% 10 Years and above
Growth rate of 10 Years & above remain same but female labor force participation was increased.
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Labor Market IndicatorsPopulation 177.7
MillionGrowth Rate 2.05%.
2010-11
Population 2010-11 Employed Un-employed
Total 57.24 M
53.25 M 3.4 M
Male 68.7%
Female 21.7%
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Labor Market Indicators
2010-11
Indicators From To + or -
Labor Force 56.33 (Million) 57.24 Million + 0.91
Minimum Wage Rate Rs/- 7,000 Rs/- 8,000 + 1,000
Employed People 53.21 Million 53.84 Million + 0.63
Unemployed Rate 5.6% 6.0 + 0.4
Agriculture Sector 44% 45% + 1.0%
Industrial Sector 13.2% 13.7% + 0.5%
Wholesale and retail 16.3 16.2 % - 0.1%
Community / Personal 11.2% 10.8% - 0.4%
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Role of Informal Sector &Pakistan Government 2010 -2011
Informal Sector
Government
Employs 73.8 percent of total labor force in 2010-11
Particulars 2010-11
Million
0.45 Million
Skilled 0.17
Un-skilled 0.20
Semi-skilled 0.073
Highly skilled 0.0030
High qualified
0.0069
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Employment shared by Sectors
45.1
13.77
16.2
5.1 10.82.1
SectorsAgriculture
Manufacturing
Construction
Wholesale
Transport
Community/Personal
Others
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Employment shared by Sectors
36.2
75.4
Agriculture Sector (out of 100)
Male Female
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Employment shared by Sectors
14.5
10.9
Manufacturing Sector ( out of 100)
Male Female
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Employment shared by Sectors
8.9
0.2
Construction Sector both (from 100)
Male Female
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Employment shared by Sectors
20.4
1.6
Wholesale Sector both (from 100)
Male Female
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Employment shared by Sectors
6.6
0.1
Transport Sector both (from 100)
Male Female
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Employment shared by Sectors
10.811.4
Community / Personal Sector both (from 100)
Male Female
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Employment shared by Sectors
2.6
0.3
Others Sector both (from 100)
Male Female
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Labor Force Expansion Policies
Micro Credit Facilities
President’s Rozgar Scheme by National Bank of Pakistan (NBP)
National Vocational and Technical Education Commission
(President’s Funnee Maharat Program and the Prime Minister’s Hunarmand Pakistan Program)
Skill Development Councils
Overseas Employment
Information Technology
National Internship Program
Investing in Increasing Water
Resources
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New Forms of Employment & Areas of Concern
The economic, social and political environment have great affects on labor-management relations.
Labor force remain in the form of unions, management committees, and collective bargaining agents.
In Pakistan, the employment is considered as the employee is having regular, casual, piece rate or apprenticeship .
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New Forms of Employment & Areas of Concern
5627
16 1
Employees %
RegularCasualPiece RateApprentice
Sectors AgricultureMiningManufacturingElectricityConstructionTradeTransportFinanceService
26 2151
97.5
6.57060
89
86
Regular % AgricultureMiningManufacturingElectricityConstructionTradeTransportFinanceServices
42
49
16
2
76
19
28 78
Casual % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services
31
30310.5
17.5
10 113
5
Piece Rate % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services
1
2
11
1
1Apprenticeship % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services
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Explanations
Regular Employees Piece Rate Employees Apprentices
56 % employees have regular work mostly in Finance, services, trade, agriculture and mining.
Every third employee out of 100 is engaged in piece rate employment in agriculture, manufacturing, mining sectors.
Proportion of apprentices is insignificant, the maximum being 2 per cent of the employees in manufacturing.
Pakistan 1999-2000
2001-2002
2003-2004
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
Labor Force Participation Rate 50.4 50.5 50.7 53.0 52.5 52.5 53.1 53.5 53.4
Employment-to-population ratio 46.8 46.5 47.0 49.7 49.8 49.9 50.3 50.7 50.4
Unemployment rate 7.2 7.8 7.4 6.1 5.1 5.0 5.2 5.3 5.7
Share of industry in total EMP 18.2 21.0 20.6 21.2 21.4 20.6 21.0 21.4 21.8
Share of agriculture in total EMP 47.8 41.1 41.8 41.6 42.0 42.8 43.3 43.4 43.5
Share of services in total EMP 34.0 38.0 37.6 37.1 36.6 36.6 35.7 35.2 34.7
Share of EMP in the informal economy
65.0 63.8 69.4 72.3 71.5 72.4 73.0 72.9 73.5
Selected key indicators of the labor market (%)
Both Male and Female
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CONCLUSIONLess wages, less remunerative
services with excellent, quality and productive work badly affects a significant portion of employed labor force.
Similarly, poor working in significant place of work also increase the cost but produce nothing.
Changing employee patterns affect industrial relations. As show in the charts, the regular workers are replaced by casual and piece rate workers. This is due to cost minimization strategy which is adopted by employers. Another factor is telecommuting which remove the boarders and increase the level of globalization. Freelancers and outsourcers are available at just one click, no need of establishing business, office, etc , also negatively affect the labor force participation
Work force is not organized in industrial units. Recent barriers of electricity, gas also affect negatively the production. Ultimately, when the production rate is zero, or equal to zero, employers will fire the labor due to zero production. This action will increase the unemployment rate and also many social evils will produce.This transformation has led to increasing inequality of income, poverty, and insecurity.
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